Disclosure: The views and opinions expressed herein are solely those of the author and do not represent the views and opinions of the crypto.news editorial.
Over the past few months, the cryptocurrency sector has been abuzz with anticipation for the impending bitcoin halving event. We are witnessing the sharpest pre-halving price surge ever recorded, with bitcoin breaking all-time highs much sooner than expected according to the 4-year cycle theory.
This rise has had a notable impact on the altcoin market, particularly the web3 gaming sector. Memecoins and ai projects used to dominate the altcoin narrative, but capital is now rotating toward GameFi projects. According data From CoinMarketCap, prominent blockchain gaming projects such as Gala Games, Pixels, and Floki recorded gains of over 50% over the past week.
A player's dream
Gaming has seen exponential growth over the decades, going from a simple form of entertainment to one of the most lucrative industries in the world. However, making a living playing video games has been a dream reserved exclusively for successful streamers and professional gamers. Thanks to the growing web3 gaming sector, that dream is now accessible to a wider audience.
That same dream is fueling GameFi, transforming it into one of the narrative trends that define the current bull run. As in the previous cycle, retail investors will likely flock to web3 gaming projects in hopes of turning their hobbies into profitable ventures.
Web3 games return
According to Footprint Analytics, the adoption of web3 games has increase 54.67% compared to the 2023 average, a trend that is expected to accelerate. This shift represents a huge opportunity for smaller studios to innovate and compete, which could lead to a new era of engaging and financially rewarding games.
Sky Mavis, the studio responsible for Axie Infinity, managed nft-game/” target=”_blank” rel=”noopener”>sure a valuation of $3 billion by the end of 2021; What's stopping new blockchain game studios from achieving the same and rivaling established companies like Konami and CD Project Red?
This time it's different
One of the most criticized aspects of blockchain-based games is their lack of engaging gameplay. In other words, playing most titles feels like a chore and severely lacks the element of fun found in traditional games.
However, that complaint has been losing steam as GameFi's projects have improved. While the broader gaming community is still skeptical about cryptocurrencies, the advantage of owning your in-game assets through nfts and leveraging DAOs to participate in game development and in-game economies will be hard to ignore. in the future.
The big players are stepping in
Traditional gaming powerhouses like Ubisoft, Square Enix, and Sony are slowly delving deeper into the web3 gaming industry. While titles like Ubisoft's 'Champion Tactics' and Square Enix's 'Symbiogenesis' may seem simple and experimental in nature, they represent the first wave of blockchain-based games conceived at traditional game studios.
Along with the recent Sony patent For a 'super fungible token', these companies highlight a transition from a purely entertainment-focused model to one that encompasses economic value, player ownership, and community-driven development. The pioneering steps taken by Ubisoft, Square Enix and Sony could serve as a model for other studios considering entering the web3 gaming sector. Watching the successes and challenges of these giants will be crucial for smaller studios and independent developers.
The present and future of game economies
Blockchain technology, although not initially developed with gaming in mind, fits remarkably well into the gaming universe. Games traditionally build their own worlds, with unique currencies subject to in-game inflation as perceived by players. These universes often feature markets and production mechanics that mirror real life, supported by player versus player (hunter) and grinding (gatherer) mechanics.
In this context, a game with its own economy does not work in isolation; It provides the perfect environment for defi and GameFi elements to thrive. This synergy between blockchain technology and games opens up new possibilities for game developers to create universes with autonomous economies where currency has real value both inside and outside the game world.
The GameFi sector still faces some difficulties, including scalability issues, poor user experience, and regulatory hurdles. The web3 gaming experience should be smoother, with cryptographic integrations in the background so that less tech-savvy players don't feel overwhelmed.
However, blockchain technology has immense potential to transform the gaming industry, generating new game mechanics, revenue models and incentives for players. Hopefully, predatory monetization models will be phased out, giving way to fair gaming economies where value is created and shared between players, developers, and content creators across multiple platforms.
What to expect in the coming months
As bitcoin continues its recovery, GameFi projects are expected to continue growing. However, certain indicators, such as the risk metric, suggest that the market is turning overheated and prepared for a correction in the short and medium term.
While nothing is certain, the web3 gaming industry is expected to record the steepest growth post-halving. Once bitcoin trades sideways and its dominance begins to fall, altcoin season will begin.
Macroeconomic factors are at play, but as long as the global economy remains stable, we will have an altcoin season in the coming months. While it is difficult to determine an exact date, the Altcoin seasonal index may aid Let's navigate the market and know when retail investors will start buying gaming coins.
